A new start for renovation funding: That's what the industry says

A new start for renovation funding: That's what the industry says

On October 3, 2025, the federal government presented a comprehensively revised restructuring offensive. The focus is on two funding instruments: firstly, boiler replacement - i.e. promoting the switch from fossil heating systems to climate-friendly alternatives - and secondly, the renovation bonus for thermal renovations of buildings. Services and deliveries are eligible for funding from October 3, 2025. Applications can be submitted via the new online portal from mid-November www.sanierungsoffensive.gv.at be provided.

These are the funding rates

The following funding rates apply when replacing a boiler: switching to district heating is funded with up to 6,500 euros, installing a heat pump with up to 7,500 euros, and switching to biomass heating with up to 8,500 euros. There is also a bonus of 2,000 euros for solar thermal systems. The renovation bonus is aimed at thermal-energetic measures such as replacing windows or facades; The exact funding amount depends on the scope of the project.
The annual budget is 360 million euros and is legally fixed until 2030 - meaning a total volume of 1.8 billion euros is available. According to the government, around 30,000 fossil heating systems will be replaced every year.
The application requires mandatory energy advice and authentication via ID Austria or photo ID. The “first-come-first-serve” principle applies: whoever submits first has a higher chance of receiving funding.

The innovations compared to previous programs are primarily the reduction of the maximum funding rates (previously up to 75 percent), the introduction of fixed technology rates and a fixed annual budget, which is intended to create more planning security. In addition, a new digital funding process via the KPC portal “KPC Online” is intended to ensure more transparency.

That's what the industry says

After months of uncertainty - particularly due to the sudden funding stop at the end of 2024 - the new edition of the restructuring offensive is generally being received positively in the industry. At the same time, companies and associations express differentiated assessments and expectations of implementation.

Stiebel Eltron: Funding comeback with opportunities – and warning

The heat pump manufacturer Stiebel Eltron speaks of a “comeback” of the funding and sees this as providing planning security again. At the same time, the company warns of future burdens for those households that hesitate to switch to climate-friendly systems. Rising CO₂ prices could lead fossil heating systems into a cost trap. According to Stiebel Eltron, heat pumps can save up to four tons of CO₂ per household per year. The company also emphasizes the potential in combination with photovoltaic systems.

Ökofen: funding calculator and call to action

Immediately after the announcement, Ökofen, a provider of pellet heating systems, published an online subsidy calculator that consumers can use to calculate their individual subsidy level. The company's message is clear: act quickly now. Since the funding regime provides for a limited budget, those interested should seek energy advice and offers in the fall. A technical change affects heat pumps: in the future, only devices with natural refrigerants will be funded - a consequence of the EU regulation on fluorinated greenhouse gases.

"After a long wait, there is finally clarity about the funding for heating replacement. Now it's about actively taking advantage of the opportunity and securing support."

Ökofen managing director Stefan Ortner

Wolf: Planning security after funding stop

Martin Kloboucnik, CEO of Wolf Heiz- und Klimatechnik and WKO official, welcomes the multi-year legal protection. He refers to the uncertainty caused by the sudden funding stop in December 2024. For many companies, the clarity that has now been created is crucial in order to enable planned customer advice and project preparation again.

Austrian Biomass Association: Downer and need for action

The Austrian Biomass Association praises the introduction of technology-specific fixed amounts - around 8,500 euros for biomass heating and 6,500 euros for district heating connections. At the same time, the reduction in the overall budget is described as a downer. There is also criticism that older renewable heating systems - such as outdated pellet or wood heating systems - are not eligible for funding. Styria offers an additional funding of 3,000 euros for the replacement of old systems. The association is calling for an increase in funding if it becomes apparent that the target for heating replacement is not met.

FBI – Building Materials Industry: Economically sensible, economically effective

The Research Association of the Austrian Building Materials Industry (FBI) sees the renovation bonus as a successful package. CEO Georg Bursik emphasizes the high impact on value creation, employment and building value. According to a study commissioned by Baumit, renovation measures result in a GDP growth factor of 3.80 and an income growth factor of 1.73 - clear arguments for the economic sense of thermal renovation.

Thermal renovation is a particularly efficient measure to reduce energy costs and ensure long-term value retention. Thanks to the new funding, now is the right time to implement planned projects.

George Bursik

Finally planning!

With the new renovation offensive, the federal government has created the long-awaited legal and financial basis for the further phase-out of fossil heating systems. For the installation and thermal technology industry, this finally brings planning and a new basis for discussion for advising customers. Even if not all industry voices are cheering: the direction is clear. Now it is important to actively shape the implementation and transfer the funding offensive into projects.